How does information from financial reports influence business decree making?

How does information from financial reports influence business decision making? Why is it momentous for business managers to appreciate the information found on financial reports?

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Answers:   Financial reports allow business managers to see current numbers compared to years prior. It will allow them to see growth or loss. It let's them know where on earth the company stands in the "open market place" and what percentage of consumer spending in that bazaar place is being spent on that company. It also help in forcasting - the fortune desk clerk responsibility - the BM looks at the years prior and sees that an increase or decline is approaching and can order stock more ably. For instance - a BM at Home Depot - he will look at financial reports to see when is the best time for snow blowers to hit stores in the New England nouns as opposed to indistinguishable item to hit stores in the Mid West. It also allows the producers of said snow blowers to see if they can lift a price increase on the product in a given year and what time of year would it be best received by the consumers.
Hope this help.

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Financial information are factual information on the financial results of your operation. Many important financial information may be found within those reports.

For example:
-management decided to draw out credit terms
government would necessarily be interested to know how this decision affect the companies working means or liquidity position and if such decision increased sale.

- management arranged to increase selling price
financial report would show how the market responded to the price increase through the sale figures , the volume of sale, and the stocks inventory.

There are many ways your information can work for you if you know how to extract the information. Financial information keeps manager well informed of business condition and them better competent to make well brought-up business decisions.

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